The firm is opening its headquarters in chicago

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Reference no: EM1382157

Political Systems, Inc., is a new firm specializing in information services such as surveys and data analysis for individuals running for political office. The firm is opening its headquarters in Chicago and is considering three office locations, which differ in cost due to square footage and office equipment requirements. The profit projections shown(in thousands of dollars) for each location were based on both strong demand and weak demand states of nature.
                                    Demand
Demand Office Location    Strong Weak
A                                         200 -20
B                                          120 10
C    100 60

Initially, management is uncomfortable stating probabilities for the states of nature. Let p denote the probability of the strong demand state of nature. What does graphical sensitivity analysis tell management about location preferences?

Reference no: EM1382157

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